Medical Tests for Term Insurance Policy

Often people think undergoing medical tests before buying term insurance is a waste of time and might lead to expensive premiums. Insurers also nowadays promote a ‘no medical test’ term plan to grab policy seekers’ attention. But that is not the right perspective or can be termed as a myth. If you are thinking why? then this blog will help you to understand the reason behind the importance of medical tests in the term insurance buying process.

Importance of Medical Tests when buying Term Insurance

Medical tests are a crucial factor to consider in the process of buying a term insurance policy. A single term insurance policy cannot be suitable for every individual. So, the medical tests help in determining the condition of your health, and further, the insurer can suggest the right term plan based on your health requirement. As the premiums of the policy largely depend on the risk factor associated with your health.

Also, term insurance policies with no medical tests usually have low insurance coverage as the insurance provider is unknown about the risks associated with your health. But, avoiding taking up medical tests can have an impact like claim rejection. Such as, during an unforeseen situation in case any pre-existing disease is discovered, the insurer might reject the policy claim and your dependents might end up getting nothing from the term insurance policy. Therefore, a term policy without the option of a medical test might not be a good option.

The basic test that every policy seeker should undergo includes CBC – Complete Blood Count, Cholesterol, Differential count, Fasting Plasma Glucose, Urine test, and HIV. The medical tests are based on various factors like your age, family’s medical history, lifestyle habits, and the policy you opt for.

Now, let’s get into the detail of why medical tests are required for a term insurance policy?

4 Reasons Why Medical Tests are required for Term Insurance

  1. Sum assured amount: The sum assured is the total insurance coverage amount that is paid by the insurer to the policy nominee/ beneficiary upon the demise of the policyholder during the policy tenure. So, here the medical tests help the insurance provider to have a deep understanding of your health status. And they would then be able to offer you the right sum assured as per your health requirement. Term plans without medical tests offer a lower sum assured which in many cases are not sufficient to fulfill your family’s financial needs.
  2. Premium amount: The essential objective of the insurance provider through the medical tests is to decide the premium amount that you need to pay for your term insurance plan. Therefore, the insurer needs to assess the risk associated with your health to determine how much premium you need to pay. For instance, if you have a pre-existing disease then the risk factor is high, and you might have to pay a higher premium. Whereas if you are healthy, your premium will be automatically lower.
  3. Low insurance coverage: Term plans with no medical tests offer low insurance coverage because in such cases the insurer is not aware of the risk linked with your health and has to compensate for unknown medical conditions which you may have not declared. Hence, the insurance provider offers low coverage amount, in absence of the medical test and perhaps the coverage amount won’t be sufficient for your family. You might find the process of medical test time taking but it is worth securing your family’s financial future. You will probably leave your family with enough cash so they can keep up their way of life after you.
  4. Claim rejection: Another crucial impact that a term plan with no medical test can have is claim rejection. During the claim settlement process, in case the insurance provider came to know about any pre-existing disease that caused the policyholder’s demise then the insurer can reject the policy claim. Medical tests are the documented proof of your health condition which can support a hassle-free claim settlement.


If you are still not convinced of the importance of medical for term insurance, then here are some benefits of undergoing medical tests.

Benefits of Medical Tests

  • Term insurance with medical tests offers a higher sum assured based on the reports of the medical tests.
  • If your medical test reports are normal, then you end up paying a reasonable premium amount.
  • The probability of claim rejection reduces with medical tests. As the insurer has a clear picture of your health condition and can assess the risk factor linked with your health beforehand.
  • The medical test reports are the supportive documents for your health condition that you may have mentioned earlier in the policy application. This helps in creating transparency between you and the insurer while resulting in settling the claim smoothly.


Opting for medical tests while buying term insurance will help you in the long run. Undergoing a medical test will ensure you get the right amount of sum assured at considerably lower premiums for the same. Moreover, having comprehensive life coverage will give you peace of mind that your family is financially safe and secure. So, make sure you don’t avoid taking medical tests for a term insurance policy.